Westpac IQ

Friday edition: analysis and forecasts for this week's key releases.

Entrenched expectations that cost increases can and should be passed on are precisely what tight monetary policy is leaning against, but only indirectly.

Monday edition: analysis and forecasts for this week's key releases.

The energy industry faces a new challenge as the surge in household battery uptake gives consumers more control over when they store, use and export electricity.

The latest edition of Sustainability Impact explores proposed reforms to Australia’s modern slavery laws and potential changes to climate disclosure requirements. We also examine the rising economic risks facing Australia’s coastal communities, progress towards lower-emissions ironmaking in the Pilbara, innovative approaches to turning waste into fuel and more.

Affordability, price stability and resilience are the major procurement priorities our customers are telling us they’re considering when sourcing their next electricity contract, and there are many trade-offs to consider.

AUD/USD staged a recovery of sorts last week, rising towards 0.6980 by Friday's close. Improving market sentiment was driven by easing geopolitical concerns after President Trump ruled out an attack on Iran before the US midterm elections, alongside strong auction demand for longer-dated US Treasuries and supportive comments from ECB President Lagarde. The week ahead could prove pivotal. US Sep CPI is the key event, followed by comments from Fed Chair Warsh (Fri). RBA Minutes (Tue) and Australian labour market data (Thu) are secondary but still important.

The Australian dollar spent much of last week holding comfortably in the mid-0.71s before buckling under the weight of higher US yields and a softer labour market report. The Australian dollar faces a defining week. The spotlight is firmly on the RBA, with markets expecting a 25bp rate hike tomorrow ahead of Wednesday's CPI. Markets will be closely watching the Governor's press conference, voting split and any commentary around softer labour market conditions for clues on whether further rate hikes remain on the table.

The Australian dollar came under pressure last week, falling to a one-month low of 0.7075 as higher oil prices, rising US bond yields and a stronger US dollar weighed on sentiment. The Australian dollar starts the week cautiously above 0.7100 as improving risk sentiment and lower oil prices provide some support. Locally this week, markets will be focusing on comments from RBA Gov. Bullock and Assistant Gov. Hunter (Tue) and Australia's August jobs report (Thur). Fedspeak, global PMIs and President Xi's visit to the US are also on the radar.